As was mentioned, it's the output the subwoofer will have with 1w of input, measured at 1m.
And, as was mentioned...it's commonly fudged by companies by either using 2.83V instead of a true 1w on a non-8ohm speaker, or sometimes they'll measure it "in car" (like Infinity does), which will likewise increase the figure beyond what it *should* be. Why do they do this? Because the general, misinformed consumer thinks that a higher number means that the subwoofer will be louder than a subwoofer with a lower sensitivity rating. But this is not true.
Major thing to remember......it shouldn't really be a concern for most consumers. It really has no value to 99% of people using the subwoofer. The main thing it's going to dictate is the enclosure volume. Hoffman's Iron Law comes in to play...which is why having an extremely high sensitivity is not inherently a good thing, and having a low sensitivity is not inherently a bad thing.